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Japan: Diet OK's Bill to Reduce Salaries - Government Employee Wage Cuts to Free 580 Bil. Yen for Reconstruction |
| Source: |
The Yomiuri Shimbun |
| Source Date: |
Thursday, March 01, 2012 |
| Focus: |
ICT for MDGs
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| Country: |
Japan |
| Created: |
Mar 05, 2012 |
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The House of Councillors on Wednesday passed a bill into law to cut national government employees' salaries by an average of 7.8 percent over two years from fiscal 2012.
The government plans to use about 580 billion yen in savings from the cuts for financing reconstruction programs in areas devastated by the Great East Japan Earthquake.
The bill on a special exemption law on state employees' salaries was opposed by the Japanese Communist Party and Social Democratic Party, but passed the upper house with a majority of votes from ruling and opposition parties at a plenary session Wednesday morning.
Liberal Democratic Party member Shoji Nishida voted against the bill.
The bill was sponsored by lawmakers based on an agreement among the ruling Democratic Party of Japan, the LDP and New Komeito.
The first cut will be an average of 0.23 percent of state employees' salaries, which was recommended by the National Personnel Authority. This cut, for fiscal 2011, will be carried out retrospectively to April last year.
From fiscal 2012, an average 7.8 percent cut, which includes the 2011 reduction, will be rolled out over two years.
The prime minister's salary will be slashed by 30 percent, while other Cabinet members and senior vice ministers will see their wages reduced by 20 percent. Parliamentary secretaries will have a 10 percent pay cut.
The reduction of salaries for Self-Defense Forces members will be deferred for up to six months due to their contributions to the reconstruction efforts and other work related to the Great East Japan Earthquake.
The law's supplementary clauses include a provision that it is up to the discretion of local governments as to whether their employees will also have salary reductions.
Cutting the salaries of national government employees, who include politicians in state posts, is considered a "reform in which both the government and Diet members share the pain." It is meant to help win understanding from the general public for the consumption tax rate hikes Prime Minister Yoshihiko Noda is aiming for.
The upper house also passed bills at the plenary session to revise laws governing the salaries of public prosecutors and judges so wage cuts can be made in this area as well.
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Japan: Diet OK's Bill to Reduce Salaries - Government Employee Wage Cuts to Free 580 Bil. Yen for Reconstruction The House of Councillors on Wednesday passed a bill into law to cut national government employees salaries by an average of 7.8 percent over two years from fiscal 2012
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